[July 21, 2016]

Survey Finds Real-Time Access to Pay Boosts Motivation and Reduces Unplanned Absences

Activehours, the company that helps people get their pay when they want it, today shared results of a new survey about how having early access to pay affects users' work lives and financial health.

Eighty percent of respondents said that having real time access to their pay was "very" or "extremely" helpful to them in paying their bills on time and with avoiding late fees on bills, as well as with avoiding payday loans or overdraft fees.

"We're thrilled to confirm that Activehours is helping people work smarter," said Ram Palaniappan, Activehours founder. "Almost two-thirds of our users said they were more motivated to work knowing they could get early access to their pay, and 70 percent said having early access to their pay had helped them reduce unplanned absences from work. This tells us we're on the right track toward creating a future where money works better for everyone."

The traditional "delayed" pay cycle creates widespread and costly issues for many Americans, who often turn to paying bills late, dealing with credit card fees, overdraft fees, or having to seek out loans. Asked what they would do without early access to their pay, many would get a payday loan, despite the high fees. Others said they would be sad, angry, or stressed, or would borrow from friends and family: "Go to parents with my tail between my legs."

"Even more than the frustration at having to pay fees and the embarrassment at turning to friends and family, what was most striking to us was the high number of respondents who said theywould do 'nothing,'" Palaniappan commented. "They saw no other options, and said they would 'starve,' 'pray,' 'be evicted,' 'live without food or utilities,' or just 'wait it out.' The outdated, traditional pay cycle places a huge burden on working Americans that's just not necessary, and it's outrageous that Americans spent more on overdraft fees last year - $32.5 billion - than they spent on fresh vegetables. For people who are trying to follow a budget, high cost loans and fees can throw off financial planning and stability. It makes no sense to hold back people's pay and drive them to high cost loans. They deserve products and services designed to help them succeed."

Kate Griffin, vice president of programs for the Corporation for Enterprise Development (CFED), observed, "We know that the mismatch between wages coming in and expenses going out is a critical issue people are managing against every day. Until we can make this easier for people, we will continue to see low savings rates, lack of options when emergencies arise, and high levels of financial stress in America. Technology solutions that help solve for this problem will make it easier for people to quickly and easily access earned income when they need it most."

Activehours gives users more power and flexibility in how they're paid compared to the traditional bi-weekly pay cycle. Anyone paid hourly with an online timesheet can download the app and sign up for Activehours, which is already working with people employed by over 10,000 companies. Activehours is community supported, meaning people decide what to pay, based on what they think is fair and what they can afford. The company's newest feature, Balance Shield, monitors users' bank accounts and automatically transfers up to $100 from their paycheck if their balance falls below $100.

About Activehours

Activehours is revolutionizing the way people get paid and making money work better for everyone. Instead of being stuck in the traditional pay cycle, Activehours lets you access the money you've already earned when you need it. Founded in 2013, Activehours is driving consumer-empowered finance through mobile technology by freeing up more than $1 trillion held up in America's pay cycle. For more information on Activehours or to download the app, visit activehours.com.

About the Survey

Activehours conducted an online survey of 1010 users across the U.S. using SurveyMonkey. All data was self-reported by study participants and was not verified or validated. Respondents participated in the study between May 2, 2016 and July 8, 2016.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160721005350/en/

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